Consumer Class Action Act

Summary

Consumer Class Action Act - Provides that the Congress declares that the protection afforded under the existing Federal Trade Commission Act is not sufficient to prevent unfair and deceptive acts perpetrated against consumers and that consumers should be allowed to sue directly for redress in the case of such practices. Provides that an act in defraud of consumers which affects commerce is unlawful and the district courts of the United States shall have original jurisdiction without regard to the amount in controversy to entertain civil class actions for redress of such unlawful acts. Defines "act in defraud of consumers" as: (A) an unfair or deceptive act or practice which is unlawful within the meaning of section 5(a)(1) of the Federal Trade Commission Act; or (B) an act which gives rise to a civil action by a consumer or consumers under State statutory or decisional law for the benefit of consumers. Defines a "consumer" as any natural person who is offered or supplied goods, services, interests in land, or intangibles primarily for personal, family, household, or agricultural purposes. Provides that in the case of any class action brought upon the basis of a violation of consumers' rights under any State law the court shall, in deciding such action, apply the following criteria: (1) State law relating to consumers' rights under State statutory or decisional law is adopted as Federal law; (2) Federal law applicable to each class shall be fashioned upon the law of the State and State statutory and decisional construction shall be applied as if jurisdiction of the Federal court were based on diversity of citizenship; (3) in cases of conflict between State statutory and decisional construction and Federal law the latter shall prevail, and Federal law governing the case shall be fashioned from State law not in conflict, and from Federal law; and (4) if, prior to the date of enactment of this Act, a cause was not subject to removal under section 1441 of title 28, United States Code, the adoption of State laws as Federal law by this Act shall not authorize the removal of such a cause on the jurisdictional basis of a Federal question. Provides that whenever a class of consumers prevails in a class action under this Act, the court shall award to the attorneys representing such class a reasonable fee based on the value of their services to the class. Provides that attorneys' fees may be awarded from money damages or financial penalties which the defendant owes to members of the class who cannot be located with due diligence, except that an attorney's fee may be awarded from damages or relief that the defendant owes to members of the class who cannot be located with due diligence. Provides that such attorney's fees awarded by the court shall not exceed 10 percent of the total judgment unless failure to award a greater amount would be manifestly unjust and not commensurate with the efforts of counsel.

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1 official file

• Introduced in House

  summary · EN · 3 January 1973

  Open at official source

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